How Much Does It Cost to Remodel a House?
According to HomeAdvisor, the average cost of renovating a home that is 1,000 square feet is $19,000. For homes in the 3,000 to 4,000 square foot range, the average cost climbs to $87,500. Renovations made to an older home tend to cost more than a newer one, especially if the wiring, plumbing and other features aren’t up to code.
Typically, you can expect to spend at least $10 to $60 per square foot on any renovation.
When you’re deciding on your home renovation budget, it can be easier, and more affordable, to prioritize projects by room and build a budget around the cost of each individual project.
Average cost to renovate:
Kitchen $4,000 – $60,000
Bathroom $2,500 – $25,000
Basement $11,000 – $30,000
How Much Should I Spend on a Home Renovation?
To get an approximate idea of what your remodeling budget should be, consider the value of your home as a whole. You don’t want to spend more than 10 to 15 percent of your home’s value on a single room. If you spend more, the value of the renovation will not proportionally add to the value of your home.
For example, if your home is worth $100,000, the maximum you should spend on a kitchen or bathroom renovation is $15,000. If your house is worth more, the spend on a renovation could be higher.
Determine Financing Before Finalizing Your Budget
Before setting the budget for your home renovation, you need to determine how you are financing it. If you are paying in cash, taking out a loan or applying for credit, the budget of your renovation will need to fit within the limit of your available funds.
Once you know how much you can afford to spend, set aside 10 to 20 percent of your available funds for unexpected expenses. This is important. Something will go wrong or cost more than originally projected. By setting aside a percentage before beginning, you know you will have the funds available to finish your project no matter what happens.